Thinking about investing in buy-to-let property this year? This special two-part article details the dos and don’ts to help make the most of your property investments.
Let’s start by looking at the things you shouldn’t do:
- Don’t fall for get-rich-quick schemes
There is no real way to make a quick buck through real estate – the only way to realise true wealth is to hold out for the long term. Don’t believe the stories you hear down at the pub about some guy who can guarantee you a massive return in a few months’ time! People making those sorts of claims are doing so in the hope of preying on the desperate and greedy ‘investor’. But to make substantial wealth, the old adage of patience is a virtue always holds true.
- Don’t be a victim of the fear-mongers
If you follow your strategy and keep your head, the sensationalist naysayers, particularly those given media coverage, should not affect you. The media does love to create a sense of mild panic, as the messages grab the attention of their readers. But if you stay the course, invest in well-located real estate and avoid panicking your portfolio will grow steadily over time and make you wealthy.
- It’s a business, not a hobby
For the serious investor, there are no half measures. Treat your property investments like a business, with you as the CEO.
To do this you need:
- a team of professionals, such as property strategists, advisers, financers/bond originators and rental managers,
- the right trust and company structures through which to invest,
- to maximise your tax claims, and
- to be committed to the process.
- Don’t be afraid to invest
You won’t have to look very hard to find a reason to not invest. Every year brings with it its own set of challenges. Remember the long-term nature of your prospective investment – in 20 years’ time the reasons to not invest will seem distant and trivial. Plan to minimise your risk with the help of your property investment strategist and forge ahead. Your older self will thank you for your courage and foresight.
- It’s not a sprint, it’s a marathon
Just imagine if you could buy the house your parents bought at the price they paid for it then… If you had known what properties would be worth today back then you would have been a fool not to grab up as many as you could. The value of properties, while they do fluctuate to an extent, do rise over the decades. You need to be able to commit now to the long haul.
- No one can know everything
There are vast stores of knowledge on topics such as finance, economics and real estate available online, however, to speed up the process and assist you with a better understanding of the property game, rather surround yourself with a team of willing experts. They will be on hand to give you all the advice and guidance you require to be able to teach yourself all that you will need to know to become a successful property investor. Check your ego at the door, be humble enough to realise that there is always more to learn and always be open to learning.
(The second part of this article will be available in next week’s newsletter.)
To begin or expand your property portfolio, contact IGrow Wealth Investments on firstname.lastname@example.org or call and ask to talk to one of our skilled property investment strategists.
Cape Town: 021 979 2501
Durban: 031 110 0817
Pretoria: 012 943 0201